CNG & Domestic PNG Prices to Drop From January 1, 2026: PNGRB Approves New Unified Natural Gas Tariff Reform

The Petroleum and Natural Gas Regulatory Board (PNGRB) has approved a major reform in natural gas transportation tariffs, rolling out a unified "One Nation, One Grid, One Tariff" framework aimed at reducing costs for Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) consumers across India. The revised tariff structure will come into effect from 1 January 2026.

PNGRB Approves 'One Nation, One Grid, One Tariff' Reform for Natural Gas

Under the new regime, PNGRB has simplified the transportation tariff system by reducing the number of tariff zones from three to two. The revised structure introduces two distance-based slabs-up to 300 kilometres and beyond 300 kilometres-replacing the earlier multi-zone framework.

Natural Gas Tariff Effective From 1st January 2026: How It Will Impact PNG & CNG Prices; Know Key Changes in Zones and Rates

As per the notification, the transportation tariff for natural gas up to a distance of 300 km has been fixed at Rs 54.00 per MMBTU. For distances beyond 300 km, the tariff has been set at Rs 102.86 per MMBTU. However, a key feature of the reform is that CNG and domestic PNG consumers will pay only the Zone-1 rate of Rs 54.00 per MMBTU, regardless of their distance from the gas source.

According to PNGRB estimates, the unified tariff regime will reduce transportation costs for the CGD sector by around Rs 1,000 crore annually. This is projected to translate into a reduction in delivered CNG prices by approximately Rs 1.25 to Rs 2.50 per kilogram, while domestic PNG prices could fall by about Rs 0.90 to Rs 1.80 per standard cubic metre.

Domestic PNG Prices Set To Drop From January 1, 2026

PNGRB Member AK Tiwari told ANI that the move should trim prices by about Rs 2-3 per unit for many consumers. The earlier tariff method, announced in 2023, split the country into three distance-based zones. Gas transport up to 200 kilometres attracted a tariff of Rs 42, distances between 300 and 1,200 kilometres were charged Rs 80, and the highest band, beyond 1,200 kilometres, carried a rate of Rs 107.

Details of the old three-zone structure and the new unified approach are shown below for clarity, highlighting how the tariff bands are being merged for large parts of the country.

Explaining the overhaul, Tiwari said, "We have rationalized the tariff. Instead of three zones, there will be two zones, and the first zone will be applicable for CNG and domestic PNG customers on a pan-India basis," underlining that the aim is a simpler and more uniform system for end users.